July 5, 2017 / 7:08 PM / 3 years ago

EMERGING MARKETS-Latam FX weaker on lower crude, EM selloff

    By Bruno Federowski
    SAO PAULO, July 5 (Reuters) - Most Latin American currencies
weakened on Wednesday on a slump in crude prices, while worries
about the independence of South Africa's central bank took a
broader toll on emerging market currencies.
    Oil prices retreated more than 3 percent following their
longest bull-run in more than five years, weighed down by
climbing OPEC exports. Currencies from oil-exporting economies
fell, including the Mexican and Colombian pesos.
    The Chilean peso declined along with a fall in the
price of copper. Brazil's benchmark Bovespa stock index
was nearly flat as a decline in iron ore futures hit shares of
miner Vale SA.
    The worries about the independence of South Africa's central
bank highlighted nerves about higher global borrowing costs.
    The South African rand slumped 1.8 percent following
reports that the ruling African National Congress had agreed at
its party conference that the central bank should be
    The currency of Africa's most industrialized nation plumbed
lows last hit in mid-June when a row over the bank's mandate
also rattled markets just as the economy fell back into
    Minutes from the U.S. Federal Reserve's latest policy
meeting showed policymakers were increasingly split on the
outlook for inflation and how it might affect the future pace of
interest rate rises. Traders said the minutes confirmed recent
market doubts over the Fed's plan to hike rates once this year
and thrice next year.
    Key Latin American stock indexes and currencies at 1845 GMT:
 Stock indexes                     Latest        Daily     YTD
                                                   pct     pct
                                                change  change
 MSCI Emerging Markets               1,009.77      0.3   16.75
 MSCI LatAm                          2,558.76        0    9.31
 Brazil Bovespa                     63,221.07    -0.02    4.97
 Mexico S&P/BVM IPC                 50,240.77      0.4   10.07
 Chile IPSA                          4,846.83     0.21   16.75
 Chile IGPA                         24,235.62      0.2   16.89
 Argentina MerVal                   22,565.34      0.8   33.38
 Colombia IGBC                      10,974.39    -0.16    8.36
 Venezuela IBC                     123,644.98     0.23  289.98
 Currencies                            Latest    Daily     YTD
                                                   pct     pct
                                                change  change
 Brazil real                           3.2996     0.25   -1.53
 Mexico peso                          18.2945    -0.63   13.39
 Chile peso                             665.7    -0.33    0.75
 Colombia peso                          3,083    -1.24   -2.64
 Peru sol                               3.257     0.00    4.82
 Argentina peso (interbank)           17.1300    -1.23   -7.33
 Argentina peso (parallel)              17.16    -1.17   -1.98

 (Reporting by Bruno Federowski; Editing by Leslie Adler)
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